Non housing protection products and business cover rise

Legal & General has reported new business sales up 3% year on year with its UK risk business reporting a 14% growth with group and non-housing personal protection sales rising.

Highlights were:

  • Worldwide new business £1,486m (FY 07: £1,437m) up 3%
  • UK new business £1,367m (FY 07: £1,321m) up 3%
  • Q4 new business 6% ahead of Q3
  • UK Risk: new business £488m (FY 07: £428m) up 14%
  • Bulk purchase annuities grow strongly up 73%
  • Group protection continues to grow up 6%
  • UK Savings: new business £879m (FY 07: £893m) down 2%
  • Unit trust and ISA sales(2) remain strong up 42%
  • Non profit pension growth boosted by SIPP sales up 30%
  • Unit linked bond sales remain lower as anticipated down 48%
  • Investment Management gross new funds £33.1bn (FY 07: £54.4bn)
  • 2007 gross new funds were £34.1bn excluding business transferred from clients of Hermes

Tim Breedon, Group Chief Executive, said: “Our sales performance has been good in a tough environment. In Q4 we have increased risk and savings sales compared to Q3.

'In our Risk business we have moved our protection products further away from housing related business.”

Overall protection was 7% lower at £207m (FY 07: £223m). Individual protection sales of £140m (FY 07: £160m) were 13% lower, linked to the 39% fall in mortgage approvals in 2008.

But L&G said: “The proportion of products not associated with a mortgage grew, including family protection, business protection and high sum assured business, as we continued to diversify away from mortgage related sales. We also benefited through the year from new sales through our major distribution relationship with Nationwide Building Society.”

“Group protection sales rose 6% to £67m (FY 07: £63m) as employers continued to seek competitive and attractive benefits for their employees. Customers are shifting their emphasis to focus more on benefit design to give them and their employees greater flexibility and value for money. We continue to build on our leading product and service proposition, positioning us well in this dynamic market.

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